4. ZEDO COMPANY - ADDITIONAL FINANCING NEEDED. Assume sales grow 40% in 2021 over 2020, the average collection period increases by 9 days in 2021 compared to 2020 (360 days in the year), inventory turnover based on sales decreases by 1 in 2021 compared to 2020, Zedo pays a constant percentage of Net Income as a dividend, and 2020 net fixed assets are operating at 90% of capacity 2020 2021 INCOME STATEMENT Net Sales $800 112.0 Cost of Goods Sold - 650 EBIT $150 Interest Expense - 15 EBT $135 -54 Taxes @ 40% Net Income Dividends 581 $27 54 Additions to Retained Earnings BALANCE SHEET - ASSETS Cash 550 Accounts Receivable 80 Inventories 100 Total Current Assets $230 Net Fixed Assets 370 Total Assets $600 LIABILITIES AND EQUITY $60 Accounts Payable Notes Payable 20 Accruals 20 Total Current Liabilities $100 Long-term Debt 100 Common Stock 190 Retained Earnings Total Liabilities and Equities 210 5600